An editorial panel at Risk selected ICE and winners of its other annual awards over a three-month judging process. The awards are designed to recognize “best practices and innovation in the derivatives and risk management industries globally.”
Risk editors said that the winning institutions are those that have best responded to the needs of their clients over the past year. In making the final decision, the panel considered a number of factors, including innovation, infrastructure, organization, risk management, quality of post-sales service and customer feedback.
Said Jeffrey Sprecher, ICE Chairman and Chief Executive Officer: “We are honored to receive the award for 2005, which has been such a significant year for ICE. We take great pride in our innovation and responsiveness to the needs of our market participants around the globe, and it is rewarding to receive recognition for our accomplishments.”
Risk cites a number of ICE achievements in 2005, including the transition of its futures business unit’s open-outcry trading floor in London to electronic trading, maintaining market operations through the U.S. hurricane season and the transformation from a private company to a public one. In April 2005, ICE transitioned its regulated IPE futures subsidiary, now known as ICE Futures, to a fully electronic marketplace, resulting in a series of volume records due to the expansion of participants trading its markets beyond the confines of the trading floor. Today, participants around the world can access benchmark products such as the IPE Brent Crude futures contract for 21 hours each day. The article states, “The Atlanta-based energy exchange's controversial decision to recast its business has boosted volumes dramatically – prompting praise from one-time skeptics, and making it a worthy recipient of Risk's Derivatives Exchange of the Year Award.”
Risk referred to ICE’s “leadership role” that was highlighted during the U.S. hurricane season, noting that despite disruptions to some markets, ICE took a lead role, partnering with others, in developing a method to price and settle daily natural gas swing swaps.
ICE completed its initial public offering in November and is now listed on the New York Stock Exchange. Risk credits ICE for other areas of focus as well. “ICE also wins plaudits for its commitment to price transparency and product development,” the article states.